Energy XXI (EXXI) filed with the U.S. Bankruptcy Court a Second Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Under the terms of the Restructuring Support Agreement, the Second Lien Noteholders who are, or later become, signatories to the Restructuring Support Agreement have agreed to a deleveraging transaction that would restructure the existing debt obligations of the Debtors in chapter 11 through the Plan (the ‘Restructuring’). The Restructuring is also supported by a steering committee of the First Lien Lenders (the ‘Steering Committee’) and the First Lien Agent, who has participated in negotiations with the Debtors and the Second Lien Ad Hoc Committee regarding the terms of the Restructuring and the Plan.”
The Disclosure Statement continues, “It is very important to the Debtors that an accelerated timeline be maintained for these chapter 11 cases because the continued support of BOEM, among others, is important to the Debtors’ operations, which support may waver the longer the Debtors remain in chapter 11.”
The Disclosure Statement also makes the following changes, “Holders of Class 7 EGC Unsecured Notes Claims, Class 8 EPL Unsecured Notes Claims, and Class 9 EXXI Convertible Notes Claims are entitled to receive specific percent allocations of the ‘Warrant Package.’…Holders of Class 7 EGC Unsecured Notes Claims shall receive their pro rata share of (a) the EGC New Equity Allocation and (b) the EGC Warrant Package Allocation if the class of Class of EGC Unsecured Notes Claims votes to accept the Plan. If the class of EGC Unsecured Notes Claims votes to reject the Plan, holders of EGC Unsecured Notes Claims will receive its pro rata share of the EGC Warrant Allocation. Holders of Class 9 EXXI Convertible Notes Claims shall receive their pro rata share of (a) the EXXI New Equity Allocation and (b) the EXXI Warrant Package Allocation if the class of Class of EXXI Convertible Notes Claims votes to accept the Plan.”
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